The CBOT started Tuesday on a firmer note but, except for soymeal, gave up ideas of higher trade as technical resistance and fund selling dominated the day. Wheat futures were the downside leader due to slow export demand and funds’ bearish positioning and corn followed with selling pressure intensifying at midday. Soymeal futures scored new contract highs and initially pulled soybeans higher too, but the bean market hit major technical resistance that thwarted the day’s rally. Traders continue to position for the coming WASDE report in expectation of bullish soybean numbers and neutral/bearish corn and wheat adjustments. Typically, the November WASDE isn’t a major market mover, but there is more hype built into this year&...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.